Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), one of the world`s largest hotel and leisure companies, said today that it has completed its previously announced purchase of Vistana, Inc. (Nasdaq: VSTN), one of the premier developers and operators of high quality vacation interval ownership.
The total value of the transaction net of debt and mortgage receivables is approximately $360 million. As a result of the merger, each share of Vistana common stock will be converted into the right to receive .4667 of a share of Starwood stock and $5.00 in cash.
The acquisition of Vistana represents Starwood`s entrance into the large and rapidly growing timeshare industry which the company views as a natural extension of its core lodging business.
Starwood, through its subsidiaries, owns, manages and franchises hotels under its St. Regis/Luxury Collection, Westin, Sheraton, Four Points and W brands. Starwood is one of the leading hotel and leisure companies in the world with more than 700 hotels in 76 countries and 130,000 employees at its owned and managed properties.
(Note: This release contains certain statements that may be deemed “forward-looking statements` within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are no guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made, including, without limitation, risks and uncertainties associated with the following: the continued ability of Starwood Hotels and Resorts (the “Trust”) to qualify for taxation as a REIT; Starwood`s integration of the assets and operations of ITT and Westin; completion, terms and timing of future acquisitions and dispositions, including the pending sale of gaming operations; the availability of capital for acquisitions and for renovations; execution of hotel and casino renovation and expansion programs; the ability to maintain existing management, franchise or representation agreements and to obtain new agreements on favorable terms; competition within the lodging industry and the gaming industry, the cyclicality of the real estate business, the hotel business and the gaming business; foreign exchange fluctuations; general real estate and national and international economic conditions; political, financial and economic conditions and uncertainties in countries in which Starwood owns property or operates; the ability of Starwood, owners of properties it manages or franchises and others with which it does business to address the Year 2000 issue, and the costs associated therewith; the adoption by several European countries of the euro as their national currency; and the other risks and uncertainties set forth in the annual, quarterly and current reports and proxy statements of the Trust and Starwood. Starwood undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.)